Template-type: ReDIF-Paper 1.0
Author-Name: Brancati, Emanuele
Author-Email: emanuele.brancati@uniroma1.it
Author-Workplace-Name: Sapienza University of Rome, and IZA Institute of Labor Economics
Author-Name: Pietrobelli, Carlo
Author-Email: pietrobelli@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, and University of Roma Tre
Author-Name: Torres Mazzi, Caio
Author-Email: torres@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: The influence of value-chain governance on innovation performance: A study of 
	 Italian suppliers
Abstract: This paper explores how value-chain governance affects the innovation
	 performance of suppliers of intermediate products. We take advantage of
	 a unique dataset of Italian firms to identify governance regimes along
	 suppliers' technological capabilities and the level of explicit
	 coordination in the value chain. Our results indicate that 'modular'
	 value-chain governance is more conducive to innovation for suppliers,
	 especially when these firms have medium capability levels. Conversely,
	 market-based governance modes appear to strongly reduce the
	 innovativeness of suppliers with low capability. These patterns are also
	 reflected in export performances and sales of innovative products. Our
	 results go partially against other findings in the GVC literature,
	 whereby relational value chains are seen to provide the most favourable
	 environment to learn and innovate. Interestingly, the highest levels of
	 technological capabilities consistently reduce the correlation between
	 supplying intermediates and innovation performance, which indicates that
	 technology-gap is an important mediator of learning within value chains.
Classification-JEL: F14, O30, O32
Keywords: global value chains, export, suppliers, innovation, technological
	 capabilities
Series: UNU-MERIT Working Papers
Creation-Date: 20210422
Number: 2021-017
File-URL: https://unu-merit.nl/publications/wppdf/2021/wp2021-017.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2021017